I don't think that's quite correct. Hypercapnia (excess CO2) triggers a reflex to inhale, that's what you feel when you hold your breath for a long time. That reflex doesn't trigger when you're inhaling CO, for instance.
But the body does have sensors to detect oxygen levels in the carotid body (and maybe the aortic body?). These do impact breathing as well, but they do so via the parasympathetic nervous system so you're not as aware of it. IIRC the way this works is poorly understood, and its dysfunction been thought to play a role in sleep apnea.
Basically, you get blood clots and those go into the heart to the lungs and block the blood vessels (killing parts of the lungs) and presumably other parts of the body. You also get the cyto storm.
So it's not surprising that it's causing damage everywhere. I wouldn't be surprised if asymptomatic people have some damage, but not enough to cause noticable symptoms.
(Incidentally this is also why it's really dangerous to hyperventilate before free diving, because you can put your O2 / CO2 ratio out of whack which can cause you to black out without warning while under water.)
This is not quite accurate. The body monitors blood chemistry centrally (in the brain and spinal cord) and peripherally (in the blood vessels).
Central chemoreceptors only monitor pH of the cerebrospinal fluid, which indirectly tracks blood CO2, but don't monitor O2.
Peripheral chemoreceptors monitor O2, CO2, and pH.
https://courses.lumenlearning.com/boundless-ap/chapter/respi...
Whether the rest of OPs theory makes sense, I don't know - but this part is indeed factual AFAIK.
I'm not a medic, I don't know is it plausible explanation or not (I'm even not sure whether I succeeded to use correctly all the anatomical words like "bronhi" or "alveoli") but I'd like someone knowledgeable to comment on this. I wander if it was true, could hypoxia explain other symptoms, like heart damage.